PRAGUE: The Czech central bank will likely raise interest rates less in 2021 than the three hikes its own forecasts signal because of the impact of the coronavirus pandemic, board member Vojtech Benda was cited as saying on Monday.

"The pandemic shock was rather severe, and I don't believe people will immediately take all their savings and go shopping like crazy," he was quoted as saying by Bloomberg news agency.

"Three hikes this year would only be realistic if we saw an uncontrolled economic recovery, which I don't assume will happen."

Benda also said the market was correctly pricing the interest rate path, which sees two hikes this year and a total of five by the end of 2022 according to forward rate agreements.

"The market is reading us very well in the longer term," Benda said. "It's pointless to agonize now over whether the first hike will be in four, five or seven months, as we're living in huge uncertainty."